Just how large the tax breaks will be and how long they will last still have to be negotiated by the theater company and the IDA.

At stake is a $22.7 million investment by Bow Tie to build the 11 first-run theaters where City Hall formerly stood on a 1.18-acre site between River Street and the Hudson River and a $3 million renovation by Bonacio Construction of the American Theater building a 285-289 River St.

Bow Tie may receive a 25-year payment-in-lieu-of-taxes agreement that would lower its property tax bill, said Steven Strichman, the IDA executive director and city commissioner of planning and economic development.

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"It would be significantly less for the American Theater," Strichman said.

The 1 Monument Square site has been off the tax rolls for more than 40 years. Strichman said the starting point for the PILOT may be based on the city's sale of the site to Bow Tie for $600,000. The estimated annual property taxes when the theaters are constructed is estimated $459,000, according to the application filed with the IDA.

At Monument Square, Bow Tie estimates with IDA support it could achieve savings on payments of $720,000 in sales tax and $229,375 in mortgage tax. At the American Theater, there could be a sales tax savings of up to $240,000.

Joseph Masher, chief operating officer of Bow Tie Cinemas and a city native, told the IDA that there is a financial risk involved in building the heaters.

"Troy has not had a successful movie theater in two decades or more," Masher said.

Troy, however, with its rejuvenation of the downtown with residential development and restaurant scene is attractive for the theater company, Masher said.

The 11 theaters at 1 Monument Square will have seating ranging from 75 to 230 customers. The American Theater would have space for 200 seats. Plans call for installing electric reclining seats with beverage and food service available inside the theaters.

The theaters are expected to attract 10,000 customers per week, expanding the downtown business scene. Strichman said an estimated $125,000 in sales tax revenues will be generated for the city from the theaters.

The IDA voted to accept the preliminary application submitted for the two theaters. The city Zoning Board of Appeals has approved the signs for the theaters.

Tuesday night, the Planning Commission and Historic Design Review will take their first looks at the theater projects. Bow Tie wants to begin construction this fall with plans to open in time for the 2018 holiday season.